NY attorney general sues Zelles parent company after Trump administration drops similar case

New York – New York Chief Public Prosecutor Wednesday filed a lawsuit against the parent company of the Zelle payment platform months after the Federal Consumer Financial Protection Bureau broke a similar case, such as Trump administration broke the agency.

A Democratic Chief Public Prosecutor Letitia James filed a lawsuit against early warning services at the New York State Court, claiming that the company, which belongs to a group of US banks, did not add critical security features to Zelle’s design, could not protect users from fraud.

Earlier this year, the Consumer Financial Protection Bureau, President Donald Trump fired the leader of the agency and his administration stopped the work of almost the whole Bureau, closed the center and moved to ignite most of his workers.

In a statement, James’s office said that after the Consumer Financial Protection Office left the case of the “change in the federal administration ,, the case was opened.

James said in a statement, “Nobody should be allowed to defend for them after a sacrifice of scams,” James said. Orum I am looking forward to taking justice for the New York people who suffer from Zelle’s security failures. ”

James became a leading antagonist of the Republican Trump and filed a lawsuit in dozens of times. Last week, Associated Press and other news organizations reported that James had convicted James as part of an investigation of whether Trump has violated civil rights, according to people familiar with the issue.

James’s case against early warning services claimed that Zelle, who allowed users to send and receive close money transfers, could not include adequate verification processes. The office said that scammers can access people’s accounts, or users can cheat to send money to fake accounts that emerge as official businesses.

In an example, a Zelle user specified by the Chief Public Prosecutor’s Office received a call from someone posing as an employee of the public service company Con Edison, who said that the electricity would be closed unless he sends money to the user through Zelle. Later, the user transferred to a $ 1,500 to a Zelle account called “Coned Billing ve and then noticed that he was defrauded, but he said he could not get his money back.

In a statement published through a spokesman, Zelle described James’ case as a “political stunt for the press, not progress,” a political stunt.

“The Chief Public Prosecutor should focus on difficult facts, stop criminal activities, and not excessive and unjust claims, but commitment to laws,” he said.

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